Industrial profits slump

Decline in factory gate prices and rise in unit costs blamed for poor performance in June

China's industrial profits dropped 0.3 percent in June from a year earlier, the worst in three months, indicating further deflationary pressures despite an alleviation in the debt servicing burden.

Total profit of industrial enterprises declined to 588.6 billion yuan ($94.8 billion) last month, compared with a 0.6 percent increase in May, the National Bureau of Statistics said on Monday.